TREASURY BONDS

WHAT ARE TREASURIES?

Treasuries are issued by governments as a way of raising money.

When you purchase a treasury security, you are effectively lending money to the government for a set period of time. You'll receive ongoing interest from the value of that loan, although the face value of the bond does not change.

They can help you guarantee a steady supply of income, but you do not have to hold the bonds until they mature. Plus, there's a thriving secondary market and you can speculate on its shifting fortunes.

You will be speculating on the likely future value of the bond. Many factors can influence its value, such as movements in the economy of that country, the risk of inflation, or the value of its currency.

TRADE TREASURIES CFDs QUICKLY AND SECURELY WITH OREX, OUR AWARD-WINNING PLATFORM

You can trade treasury contracts for difference (CFDs) or spread bet with support from our team of experts. Our OREX desktop platform and mobile app allow you to trade treasuries in global markets including the US, Asia and Europe, and you can check market movements and make trading decisions in seconds.

As with other CFDs, you will be speculating on the underlying price of an asset, in this case the treasury bond future contract, without actually owning the asset yourself. You can choose which assets to trade through the OREX trading platform. This gives you access to historical trading figures, current prices and market trends. Just make your choice and start trading.

Range of markets

ADSS offer the chance to trade on government treasury securities in a range of markets, including:

  • Long gilt
  • Dollar index
  • Bund
  • Bobl
  • Schatz
  • T-Bond
  • Euro Dollar
  • Euribor
  • Short Sterling
  • EuroSwiss
  • Dollar Index

You can choose which assets to trade quickly and simply through the OREX trading platform. This gives you access to historical data and current prices, allowing you to identify trends.

Market Information

Region Expiry Margin from Trading Hours
US Treasuries and Interest Rates Quarterly 10% 22:00 - 21:00
UK Treasuries and Interest Rates Quarterly 10% 06:30 - 17:00
Eurozone Treasuries and Interest Rates Quarterly 10% 00:01 - 20:00
Market Info Sheet Market Info Sheet (Spread Betting)

TREASURY BOND TRADING EXAMPLES

With OREX, you can log into your account and select from any of the markets we’ve listed above. You'll see the latest market information, pricing, historical trades and all the details you need in order to get started. Once you’ve made your decision, simply click or swipe.

When you’re trading treasury securities via a CFD or spread bet, you won't own the asset. Instead, you will make a bet or speculate - will it gain or lose money? You need to look at factors that can affect the future value of a country’s bonds, such as a worsening of the economy, a decline in the value of its currency or a looming political crisis.

For example, if you believe an economy is likely to suffer, you will expect the value of the treasury bond to fall, in which case you will choose to short. Simply click ‘sell’ and choose how many units you wish to sell.

You can then use either the OREX platform or the more generic MT4 to monitor the direction of the market. If you do not have an automatic stop position, you may decide to close your position by buying at the new price. Depending on how things work out, this is a chance to either maximise your gains or limit your losses.

Let’s say the Gilt future expiring in June is quoted at a bid/ offer price of 12172/12175

Scenario A: A profitable trade

You expect the Gilt price to rise so you buy one contract of the June Gilt future (this is equivalent to making a 1 GBP profit or loss for every point it moves).

You bought at 12175, the price went up and the quote is 13120/13123 and you wish to take your profits. You sell your position by closing it at the selling price of 13120

Your total profit = (13120 - 12175) * 1 = £945

Scenario B: An unprofitable trade

You expect the Gilt price to rise, so you buy one contract of the June Gilt future (this is equivalent to making a 1 GBP profit or loss for every point it moves).

You bought at 12175 but the price actually goes down and the quote is 11120/11123. You wish to take a loss. You sell your position by closing it at the selling price of 11120.

Your total profit = (11120 - 12175) * 1 = -£1,055

As with any CFD or spread bet, success depends on understanding how the instruments work, good market knowledge and an eye for where the market might move. Please remember that using leverage can enable you to gain a large exposure to a financial market while only tying up a relatively small amount of your capital. In this way, leverage magnifies the potential for both gains and losses, and it is possible to lose all the capital you invest.

Why trade through ADSS?

  • • Competitive marketplace prices and spreads.
  • Flexible trade sizes.
  • The ability to go long or short and capitalise on both upward and downward market trends.
  • A simple account opening and funding process.
  • Customer support available 24 hours a day.
  • An intuitive platform and interface.
  • The chance to build knowledge through our CFD training courses.
  • The ability to test your skills with a demo account.
  • Our award-winning desktop platform and mobile app make it easier than ever to start trading treasuries, no matter what your experience.

Open a Trading Account Today